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July 9, 2018

India has conveyed to Russia its unwillingness to go ahead with the
joint development of a fifth-generation fighter aircraft (FGFA)
primarily due to high cost involved in the project, official sources
said.

They, however, said the negotiations between the two
countries on the much ambitious project have not yet been shelved as
India was ready to have a re-look at co-development of the jet if an
appropriate cost sharing formula between the two countries was arrived
at.

India and Russia had signed an inter-governmental agreement
for the mega project in 2007, vowing to take the military ties between
the two strategic partners to the next level. However, the project has
been stuck for the last 11 years as there have been serious differences
between the two sides on sharing cost of developing the jet,
technologies to be used in it and number of aircraft to be produced.

The sources said the cost of the project has been estimated at around USD 30 billion or Rs 2 lakh crore.

"Our
position on various aspect of the project, including the cost
component, has been conveyed to the Russian side and there has been no
resolution to the issues yet," a top official involved in the
negotiations with Russia over the project said.

In December
2010, India had agreed to pay USD 295 million towards the preliminary
design of the fighter jet. Later, both sides had expressed intent to
contribute each USD 6 billion for final design and production of the
aircraft in the first phase. However, they could not come out with a
final agreement on it.

"We have not closed our door on the project," the sources said.

It
is learnt that India was insisting on equal rights over the technology
to be used in the aircraft but Russia was not ready to share all the
critical technologies of the plane with New Delhi.

In the
negotiations for the project, India had insisted that it must get all
the required codes and access to critical technology so that it can
upgrade the aircraft as per its requirements, sources said.

In
February 2016, both the countries had revived talks on the project after
a clearance from then Defence Minister Manohar Parrikar.

Sources
said both sides were attempting to thrash out the sticky issues but
added that India was not optimistic that the project will fructify due
to cost involved in the project.

Interestingly, state-run
aerospace behemoth Hindustan Aeronautics Ltd (HAL) is strongly pitching
for the fifth-generation fighter jet project. The HAL feels the
multi-billion dollar project will provide India a significant
opportunity to encourage its aerospace sector as no country has ever
offered such critical technologies to India.

There have been indications from the Indian Air Force that it was not very keen to pursue the project in view of the high cost.